Section - A

1. Answer all the following parts in about 100 words each:

Marks: 5 × 6 = 30

(a) What do you mean by optimal taxation?

(Comment for solution.)

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(b) Explain the concepts of existence value and user value of environment.

(Comment for solution.)

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(c) What is the Lerner's index and what is its value for perfectly competitive markets?

(Comment for solution.)

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(d) Explain product differntiation and state whether advertising can serve as a signal of qualit of products.

(Comment for solution.)

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(e) What is the economic role of planning for market economies?

(Comment for solution.)

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(f) Distinguish between Revenue deficit and Fiscal deficit.

(Comment for solution.)

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Section - B

Answer any six questions out of the following nine questions in about 200 words each:

Marks: 15 × 6 = 90

2. Discuss the merits and demerits of recent 'Demonetization Policy' of India.

(Comment for solution.)

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3. Examine the role and effectiveness of pollution taxes as environmental policy instrument.

(Comment for solution.)

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4. What are contestable markets? What implications do they have for productive, economic and dynamic efficiency? Are contestable markets same as perfectly competitive markets?

(Comment for solution.)

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5. Assess the impact of increasing International Trade on environment and sustainable development in the present era of globalization.

(Comment for solution.)

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6. Explain the principles followed in taking public investment decisions.

(Comment for solution.)

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7. "A goal without a plan is just a wish."

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Discuss the above statemetn in the context of economic planning. Distinguish between Imperative and Indicative planning.

(Comment for solution.)

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8. Why do firms wish to grow? Is there a case for small firms to continue to remain small?

(Comment for solution.)

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9. Differentiate between Exhaustible and Renewable resources. How can these resources be managed for future sustainability?

(Comment for solution.)

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10. Can markets be completely free? What are the compelling reasons for economic regulation in the market?

(Comment for solution.)

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Section - C

Answer any four questions out of the following six questions in about 300 words each:

Marks: 20 × 4 = 80

11. Discuss the operational problems in implementing the Goods and Services Tax (GST) in India.

(Comment for solution.)

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12. Discuss the important indicators of sustainable development.

(Comment for solution.)

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13. Calculate the monopoly and duopoly equilibrium values for output, price, profit and consumer surplus when the inverse demand function is P = 50 -2Q and the cost function C = 10 + 2q, where Q is the industry output and q is the output of the firm. How will the results be different if each duopoly firm faces different cost functions instead of the same? What does increased competition do to the equilibrium outcomes?

(Comment for solution.)

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14. "Balanced and unbalanced growth need not be conflicting and an optimal strategy of development should combine some elements of balance and unbalance." Discuss with reference to secotoral planning in India.

(Comment for solution.)

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15. Distinguish between Common Property Resources (CPR) and Private Property Resources (PPR). Explain how the linkage between the two is important in the context of environmental management.

(Comment for solution.)

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16. Discuss the meaning and determinants of 'barriers to entry'. Can barriers to entery exist for perfectly competitve markets? How can we justify the notion of barriers to entry within horizontal merger policy?

(Comment for solution.)

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